When you buy property in Thailand there will be transfer taxes. The cost of transfer or conveyancing fees in Thailand will depend on how long the last owner had the property for. This will change the transfer duties as the Thai government a few years ago introduced this sliding scale to discourage property flipping in Thailand. This did not remove the speculation from the property sector but changed how property speculation took place. This became mainly from buying off plan in the end.

Transfer Taxes

Transfer Duty

The following would be the taxes paid during the transfer process. Buyers and seller would pay the different taxes and some of the taxes would be paid for jointly. Speak to an attorney about this. The first cost is Transfer Duty which is 2% on the government appraised value of the property. These are fixed and only changed by the Land Office in Thailand every 4 years. In the West this would be your municipal value which is normally but not always lower than the market value.

Business Taxes

The next tax is the business tax which is 3,3% of the sale price. The specific business tax is 3% plus 10% municipal tax on this which is 0,3%. This taxes do not need to be paid under certain circumstances. The following is a brief breakdown of what might be relevant to you. This tax is not payable if the property is being sold to your legitimate child, biological and not adopted. If the property is being transferred to an heir in an estate. Then the most important one being that the owner has held the property for more than 5 years and that the place being sold is the primary residence of the owner. The name of the owner has also been in the Tabian Baan for at least 1 year before the sale of the property. As stated before that this was to eliminate or reduce property speculation.

Stamp Duty

The stamp duty is 0.5% which is on the sale price of the property. This is paid only if business taxes are not being paid. So if you are buying a condo from someone who had the property as his primary residence and had the unit for more than 5 years then there will normally be stamp duty and not business taxes. Speak to an attorney about this as they will check this when have a due diligence done on the property. Note that the seller of the property normally pays this tax.

Withholding Taxes

The withholding taxes is normally 1% of the value of the property. This could be the municipal value or sale value whichever is the highest. There is a progressive scale with the withholding taxes so you should speak to a property lawyer in Thailand for a calculation. Note that the withholding taxes are paid for by the seller of the property.

These would be the basics that you would need to know about buying and selling property or real estate in Thailand. Speak to an attorney in Thailand for more information.